Let’s examine five signs that you need to seek financial counseling immediately.

1. You Have Significant Debt

The Federal Trade Commission recommends that you should seek counseling if you’re unable to work out some sort of payment arrangement for a significant debt that you owe. It’s better to seek help as soon as possible in this case, as your large debt will only get larger as time passes. You must find ways to bring down your balances, or the interest will slowly bury you and potentially lead to bankruptcy.

2. You’re Not Sure How Much You Owe

The amount of debt that you owe can be unclear due to added penalties, multiple debts and how debts seem to drift from one collection agency to another. If this is the case, then should seek financial counseling to help straighten out how much you owe. You can then begin planning how to reduce your debt. You can either record each of your bills as they come in by mail, or you can reach out to credit score agencies to see what lenders are reporting to them. This can be a great way to track down lost or forgotten balances.

3. You’re Afraid to Open Your Mail or Answer the Phone

If you’re living your life in fear because you’re worried about communication from debt collectors, then it’s time to seek counseling. Even if you don’t answer your phone and your don’t open your mail, you’re still liable for your debts.

That means that you could find yourself in legal trouble if you ignore your debts. Seek help and don’t put off your debts until they come to that point.

4. You Need a Credit Card or Loan to Live

Another sign that you need financial counseling is if you need some kind of credit to live your day-to-day life. You need someone to help you figure out how to reduce your living expenses and, if necessary, to deduce if steps like filing for chapter 7 or chapter 13 bankruptcy is for you. If you decide to investigate bankruptcy, try firms like Lynch & Belch P.C. or others who offer free consultations. If the firm you are researching asks for large up-front fees, your best bet is to look elsewhere.

5. You’ve Drained Your Savings Account Dry

Using every last penny of your savings account is a sign that you’re in dire need of financial counseling. It’s imperative that you seek it, as your situation will only get worse as time presses on.

Financial Difficulty Just Doesn’t Disappear

While minimizing your living costs will help you become free from debt, it won’t help you stop creditors from taking legal action against you. The only way to resolve financial difficulties is to get help in figuring out how to repay what you owe and deciding on what legal measures you need to take to protect yourself.

About the author:
A recent college graduate from University of San Francisco, Anica loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she’s used to putting things to a vote. Also, cartwheels are her specialty. You can connect with Anica here.

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